Ipsco Inc., North America's second largest steel pipe maker, is in discussions about a possible acquisition by Russian Evraz Group, as reported by the Russian press on Thursday.
Ipsco's Lisle, Illinois-based firm said on Thursday in a statement, "There can be no assurance that any transaction will occur," without identifying any suitor. Executives at both Evraz and Ipsco have declined to discuss the possible takeover.
A report by a Russian financial newspaper said that Evraz Group, Russia's second largest steel producer, has inquired about funding from UBS AG with a view to purchasing Ipsco.
If Evraz acquires Ipsco, Evraz would become the world's ninth-biggest steelmaker and would gain powerful access to the North American energy pipe business, which supplies to the oil and natural-gas markets.
Ipsco Inc., North America's largest energy tubular and steel plate producer, has an annual steel production of four million tons. Its operating facilities are located in the United States and Canada.
Evraz Group, one of the world's leading steel producers, operates facilities mainly in Russia.